Factors Affecting Decision Implementation in Organizations
Every organization desires to see successful implementation of the decisions it makes. However, every decision made is subject to some factors that are present in the business environment. Identifying those factors and measuring their impact is not an easy task, because it requires careful planning and critical analysis of the internal and external environment. Failure to examine the environment effectively will lead to ineffective evaluation. As a result, the decisions implemented might not achieve the intended objectives (Pride, Hughes & Kapoor, 2010).
Factors affecting decision implementation in an organization and the appropriate solutions
Any organization that plans to venture in to a new market must identify and examine the factors that affect its implementation decisions. This helps in developing the most efficient and effective ways of implementing the decisions. Economic factors are among the major factors that need to be considered. The organization should determine the most cost-efficient ways of implementing their plans. This will help them in maximizing on the benefits to be derived from the project. In addition, the company needs to consider the short-term and the long-term benefits and how to balance the two. This involves investing in projects that will not only see the company gain in the near future but also in the long-term (Pride, Hughes & Kapoor, 2010).
In the case of Kava, the organization will need to import most of the labor force from its home country, because Kava has a shortage of experienced workers. This will be costly in the short-run however; it helps the company to implement effectively and efficiently its initial plans. At the same time, the organization will be training the indigenous labor to equip them with the necessary skills. This will be costly in the short-run, although it will help the company to have cheap, skilled labor in the future. The company can begin by importing its goods and services before it identifies local suppliers, as this will help it in recouping some of the costs through the sales made (Information Resources Management Association. International Conference & Khosrowpour, 2002).
Social factors are also worth considering during implementation. In the case of Kava area, the company needs to determine the effects of their intended project on the inhabitants of Kava. This includes their beliefs, their needs and priorities. These are important because if the community around the company is not comfortable with the existence of the company in the area then it will not operate effectively. For instance, the company might be planning to import labor from its home country. This might not be received well by the people of Kava, because they would want to see their people employed in the company instead of foreigners. Therefore, the company must seek to build a positive relationship with the community to ensure smooth operations. One of the ways of doing this is by initiating development projects that address the needs of the Kava people. This includes building a training institution, where the unskilled labor force can be trained to have the necessary skills (Information Resources Management Association. International Conference & Khosrowpour, 2002).
Legal factors are also important when planning to initiate a project in a foreign country. The company needs to determine the laws that govern the operations of such a business. This will help the organization to carry out its activities within the law. As a result, the company will avoid conflict with the law enforcers. These include the government and other no-governmental institutions. Therefore, the company should determine the environmental laws, incorporation laws and any other regulation that affects the implementation. Armed with information, the manager can determine which areas to areas to venture in to, where the organization will not strain its resources in trying to comply with the rules of the land (Pride, Hughes & Kapoor, 2010).
Resources and actions required for decision implementation of the proposed solution(s)
Financial resources top the list of the resources needed to implement the decisions. The new subsidiary in Kava can receive financial support from other already established branches in the home country. This helps in reducing financial costs associated with borrowing, because the amounts provided will be repaid without interest. However, if the established branches are not able to provide adequate financial support then the company can supplement the option with loan from the bank. Secondly, the company needs skilled human labor to be able to initiate its operations effectively and efficiently. Considering the fact that training the inhabitants would be a long-term project, the company needs to import labor from its country of origin. This is a short-term measure, because the skilled employees will be able to train the inhabitants on how the job is done. The company needs to open up new branches in Kava, which means that it will need capital resources such as land. In addition, it will need to build structures in which it will sell its products. Here the organization can use most of the unskilled labor with the help of few skilled laborers in building. (Weitz & Wensley, 2002).
The ethical implications of the proposed solutions from stakeholders’ perspectives
Various stakeholders of Wal-Mart will be affected by the decisions of the company. The stockholders have invested their resources in the company with the hope of creating more wealth. However, as they desire that the company make more profit, they must allow the organization to give back part of its earnings to the society. Therefore, the company will need to train the inhabitants as a way of being socially responsible. In adhering to rules and regulations, which include producing safe products and observing environmental laws, the company will have acted ethically. This will guarantee the consumers of its products that they will be protected from harmful products. Although the use of imported skilled staff at the initial stages of implementation is expensive, it guarantees that the products and services will be up to standard. This is ethical because, the company will be using qualified people instead of using under age employees who offer cheap labor. This is a positive measure in helping the government, who is a major stakeholder in promoting ethical business operations (Weitz & Wensley, 2002).
Factors that affect implementation of decisions can be economic, social or legal. The economic factors deal with the cost-benefit analysis of the implementation alternatives. Here the organization is supposed to determine the alternatives that provide the best value in the long-term. Socially, the decisions of an organization affect communities and are affected by the communities around them. Therefore, the business must consider the implementation of its decisions based on the interest and needs of the surrounding communities. Lastly, every decision made by the organization has ethical implications on its stakeholders. This means that as firms decide how and when to implement its decisions they must ensure that, the ethical requirements are fully observed.
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